3 Reasons China’s Box Office Soared This Summer While the US Flopped

This summer, a high-octane action movie captivated audiences in one of the world’s largest film markets, grossing nearly $1 billion and changing the trajectory of its box office forecast. And while that seems like welcome news for the slumping U.S. box office, it wasn’t: the movie was China’s “Wolf Warrior 2.”

“Wolf Warrior 2,” directed by and starring Wu Jing, made more than $800 million in China at the same time U.S. box office was struggling through its worst summer slump in more than a decade. (New Line’s record-setting “It” helped the domestic box office bounce back in September, but it remains down nearly 5 percent year-to-date.)

At the Future of Asia Conference put on by the Los Angeles World Affairs Council in Santa Monica earlier this month, Leeding Media CEO David U. Lee said the Chinese box office could finish up as much as 20 percent this year, a welcome performance after the world’s fastest-growing movie market flatlined last year following years of double-digit growth. Jonathan Papish, a box office analyst at China Film Insider, said that growth rate is possible if including online ticketing fees, but even adjusting for those, it should still finish up by a healthy mid-teens percent.

With all the doom and gloom in Hollywood, here’s how China held strong:

Sometimes it only takes one movie

“The difference between this year and last can mainly be attributed to the success of ‘Wolf Warrior 2,'” Papish told TheWrap. “In fact, removing its current gross (5.28 billion yuan) would actually place this year’s box office behind last year’s, excluding ticketing fees.”

“Wolf Warrior 2” passed Stephen Chow’s “The Mermaid,” which was released last February, to become China’s all-time highest-grossing movie. “The Mermaid” got 2016 off to a strong start, but a combination of reduced ticket subsidies and a weak local slate turned it into a major disappointment, as the Chinese box office grew just 4 percent last year, and actually declined in dollar terms, as the Chinese yuan weakened against the U.S. currency.

But “Wolf Warrior 2’s” record-setting performance, which came during the busier summer season, almost single-handedly gave 2017 a different ending.

In 2015, it took “Star Wars: The Force Awakens” to propel the domestic box office to a record high. Last year, five of the 10 highest-grossing films in North America were either “Star Wars” or superhero movies. And even this year, the industry is largely counting on “Star Wars: The Last Jedi,” along with comic-book adaptations “Thor: Ragnarok” and “Justice League” to rescue a brutal 2017.

But despite China being a much less mature movie market, its audiences seem to have a diversity of tastes that make it less reliant on droids and Avengers than the U.S. is.

Hollywood continues to count heavily on caped crusaders and their ilk, with Warner Bros. “Wonder Woman,” Disney’s “Guardians of the Galaxy Vol. 2” and Sony’s “Spider-Man: Homecoming” making up three of the top 5 domestic films thus far this year. But it’s a different story in China, where a mix of homegrown films and non-comic book based movies have been among its strongest performers.

“If ‘War for the Planet of the Apes’ eventually surpasses ‘Spider-Man: Homecoming,’ a Hollywood superhero film will fail to rank in the top 10 highest-grossing imports of the year for the first time since 2003,” Papish wrote earlier this month.

“Wolf Warrior 2” was easily the major story behind China’s box office turnaround, but imports also did their duty.

Hollywood’s superhero hits didn’t do the numbers in the Middle Kingdom they did at home, but domestic disappointments like “Transformers: The Last Knight” and “xXx: Return of Xander Cage” soared in China. And Indian film “Dangal,” which made just $12.4 million domestically, hauled in a whopping $193 million in China.

“2017 has been a stronger year for imported films,” Papish said. “Can’t [just] say Hollywood because ‘Dangal’ is currently the 3rd highest-grossing import of the year.”

China still needs Hollywood films to fill its ever-expanding supply of theaters. But the good news for its filmmakers — potentially bad news for Hollywood — is that its box office no longer lives and dies with them.

Hollywood's 22 Biggest Box Office Champs in China (Photos)

Chinese moviegoers love to spend their hard-earned yuan on Hollywood blockbusters like "Captain America: Civil War," "Avatar" and "Star Wars: The Force Awakens." Comedies and dramas? Not so much. Read on to see which American hits have raked in the most money (according to BoxOfficeMojo) in that nation across the Pacific.

Disney/Marvel/Lucasfilm/Fox

"Furious 7" (2015)

$390.9 million

The Vin Diesel and Dwayne Johnson revved-up action flick is easily the highest-grossing Hollywood movie ever in China. The late Paul Walker remains among China's most beloved American actors.

Universal

"Transformers: Age of Extinction" (2014)

$320 million

Mark Wahlberg starred in the sci-fi movie based on the foldable toys, which was co-produced by two Chinese firms and was the first Hollywood movie to make more than $300 million in the Middle Kingdom.

Paramount

"Avengers: Age of Ultron" (2015)

$240.1 million

The superhero mashup is China's highest-grossing Marvel Cinematic Universe film, a franchise that's been embraced by the country's young-leaning moviegoers.

Marvel

"Zootopia" (2016)

$235.6 million

The buddy-cop comedy is the highest-grossing imported animated film in the history of the Chinese box office, and it played especially well in China's second- and third-tier cities.

Disney

"Jurassic World" (2015)

$228.7 million

Like "Furious 7," the dinosaur sci-fi adventure was produced by Legendary Entertainment, which was acquired by China's Dalian Wanda Group in January.

Universal

"Warcraft" (2016)

$220.8 million

Another Legendary film, this one inspired by a video game series, flopped in the U.S. but dominated the Chinese market, which is home to about half of the video game's players worldwide.

Universal

"Avatar" (2009)

$204.1 million

The worldwide smash hit also captivated Chinese audiences, even back in 2009, when the country's box office was a fraction of the size that it is today.

The prequel to this film, 2009's "Transformers: Revenge of the Fallen," made $65.8 million in China, setting the stage for "Dark of the Moon" to be the country's highest-grossing Hollywood film since "Avatar" at the time.

Paramount

"Kung Fu Panda 3" (2016)

$154.3 million

The Mandarin-language version of the movie starring Jack Black as a friendly fighting bear had the characters reanimated so their mouths moved naturally with the translated words.

DreamWorks

"The Jungle Book" (2016)

$150.1 million

The live-action/animation hybrid was a hit in several international markets, especially India, and it also played well throughout China.

Disney

"Mission: Impossible - Rogue Nation" (2015)

$135.7 million

China's Alibaba Pictures invested in "Rogue Nation," and star Tom Cruise visited several Chinese cities to promote the film, helping it open strong and stick around in theaters even though its China debut came more than a month after its U.S. premiere.

Paramount

"Star Wars: The Force Awakens" (2016)

$124.2 million

Despite China being one of the few markets that didn't catch "Star Wars" fever -- the movie put some people there to sleep -- Disney's promotional efforts helped it clear $100 million.

The third and final installment in Peter Jackson's "Hobbit" series was another movie that succeeded even though it was released in China well after its U.S. premiere.

Warner Bros.

"Iron Man 3" (2013)

$121.2 million

All three movies in the Robert Downey Jr. franchise have played in China, helping build brand awareness beyond just the bankable Marvel name.

Marvel

"X-Men: Apocalypse" (2016)

$12o.8 million

Disney bought Marvel Entertainment in 2009, but Fox acquired the film rights to Marvel's "X-Men" franchise before then. It doesn't seem to matter much in China, where anything Marvel often turns into a big hit.

Fox

"Captain America: The Winter Soldier" (2014)

$115.6 million

The predecessor to this year's "Civil War," "Winter Soldier" was a hit despite its fairly political content, which is usually a negative in Chinese theaters.

Marvel

"Terminator Genisys" (2015)

$113.2 million

The fifth "Terminator" film was the franchise's lowest-grossing since the 1984 original, but it was the first in the series to get a Chinese theatrical release.

Paramount

"Pacific Rim" (2013)

$111.9 million

The futuristic sci-fi adventure, in which humans battle sea monsters, is yet another fantasy action movie that Chinese audiences loved.

Warner Bros.

"Ant-Man" (2015)

$105.4 million

Yet another Marvel Cinematic Universe movie, "Ant-Man" made just $180.2 million at the domestic box office but was a much bigger hit in China.

Marvel

"San Andreas" (2015)

$103.2 million

China knows Dwayne Johnson from the "Fast and Furious" franchise, and the earthquake disaster film he headlined last year reverberated at the Chinese box office.

Chinese moviegoers love to spend their hard-earned yuan on Hollywood blockbusters like "Captain America: Civil War," "Avatar" and "Star Wars: The Force Awakens." Comedies and dramas? Not so much. Read on to see which American hits have raked in the most money (according to BoxOfficeMojo) in that nation across the Pacific.